Contract functions in service exchange governance : evidence from logistics outsourcing

Selviaridis, Konstantinos (2016) Contract functions in service exchange governance : evidence from logistics outsourcing. Production Planning and Control, 27 (16). pp. 1373-1388. ISSN 0953-7287

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The logistics outsourcing literature emphasises relational governance mechanisms and has underplayed the role of formal contractual provisions. This paper empirically examines the multiple functions that contracts perform in the governance of service exchanges. Codification, safeguarding, coordination and adaptation functions are linked to contract specification schedules, payment mechanisms, (early) termination rights, performance review and communication provisions, service variations clauses and renegotiation provisions. Contracts may also embody exchange- or partner-specific learning, albeit to a limited extent. Overall, the empirical findings lend support to the functional view of contracting. The functionality of contracts extends beyond safeguarding against opportunism and financial losses. In addition to offering economic and legal safeguards, contracts are used to coordinate and adapt service exchanges in the face of complexity and uncertainty.

Item Type:
Journal Article
Journal or Publication Title:
Production Planning and Control
Additional Information:
This is an Accepted Manuscript of an article published by Taylor & Francis in Production Planning and Control on 25/08/2016, available online:
Uncontrolled Keywords:
?? contractingexchange governancecontract functionsbusiness serviceslogistics outsourcingstrategy and managementmanagement science and operations researchindustrial and manufacturing engineeringcomputer science applications ??
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Deposited On:
22 Jul 2016 08:12
Last Modified:
17 Dec 2023 01:34